MBEYA UNIVERSITY OF SCIENCE AND

TECHNOLOGY

DEPARTMENT:CIVIL ENGINEERING
COURSE:BACHELOR OF CIVIL IN ENGINEERING
MODULE:ENGINEERING ECONOMY
ACADEMIC YEAR:2019/2020
LEVEL:UQF: 8
TASK:GROUP ASSIGNMENT

S/NO. NAMES REG NO.

1 VERONICA H NGOWI B41641091
2 MWAMPALE, SEKELA R B31741161
3 RICHARD MWAMBIJE B41641084
4 DAUDI A. MWASAMILA B41731021
5 JUMA H MZUNDU B41641086
6 AVIT. D MVUNGI B41641082
ECONOMICAL EQUIVALENCY STUDIES ON
SOLUTION OF WATER SUPPLIES AT IDUHUMBI
VILLAGE (MBEYA).

1.0 Brief historical background of the problem of water supply at Iduhumbi

village.
The community of Iduhumbi in rural mbeya had faced the challenges of
declining of coffee yield due to scarcity of water for long time, the only available
water source that was shared by four villages Iduhumbi, Ihombe, Ilawa, and
utengule was not enough to accommodate water demand especially in harvest
season.This did not only affect their farming and coffee processing but also
everyday life as caring waterfrom far away posed a significant risk Often women
and childrencarry water for long distance are exposed to hazardous condition.
Due to the nature of the problem and the topography of the area three(3)
possible water source alternatives are suggested and there economic equivalence
are evaluated accordingly to get the most feasible alternative.
The suggested water source alternatives are;
a) Rope pump
b) Water points
c) –

A) ROPE PUMP.
A rope pump is a kind of pump where a loose hanging rope is lowered into the wall
and drawn up through a long pipe with the bottom immersed in water.On a rope
round disc or knot matching the diameter of the pipe are attached which pull the
water to the surface.
Present worth value(P)for rope pump system are to be obtained through ;
 i. Materials
ii. Labor
iii. Equipment
iv. Security
v. Transportation
vi. Meeting
vii. Storage of material
viii. Reinforcing steel

The design period of the rope pump,n=10years, i=10%

Number of compounds at iduhumbi village= 10,000 farmers households
Diameter of well = 1.5m, Depth = 5m

s/n ITERM QUANTITY UNIT RATE FINAL PRICE

1 Materials
 Cement 5 bags of cement 1 bag of cement@15,000 5*15000=75,000/=

 Sand 2 trips of Isuzu truck 1 trip of sand@60,000/= 2*60,000=120,000/=

1105 Burnt b
 Bricks ricks 1 burnt brick@200/=, for the 1105*200=221,000/=
whole project, it will cost 1105
bricks
1 pvc pipe
 PVC pipe 1 pvc pipe @ 35,000/= 1*35,000=35,000/=

1 High strength
 Rope double braided High strength double braided 1*10,000= 10,000/=
polyester marine polyester marine rope @
rope 10,000/=

1 wheel
 Wheel 15 knots 1 wheel@ 15,000/= 1*15,000= 15,000/=
1 knot @1400 15*1,400=21,000/=
 Knots
2 reinforcing steel
bars (12m full 1 bar of 12 mm 2*20,000= 40,000/=
 Reinforcing
length) diameter@20,000/=
bars(12mm)
2 Labor For unskilled labor, 5*50000=250000
 Skilled excavation will take  5unskilled@10000per
 Unskilled 5 days day= 50000 per day

2 skilled labors 1skilled labor for 2*30,000/=60,000/=

-brickwork within 2 brickwork@30,000/= per day
days 1 skilled labor for installation of
-installation of rope rope pump@35,000/= 2*35000=70,000/=
pump within 2 days
3 Equipment
 hoe, spade, 2 hoes, 2spade,  2hoe@5000 =10000 10,000
bucket, pick 2 bucket,
axe 1 pick axe  2spade@10000=20000 20,000
 welding
machine  2bucket@4000=8000 8,000
 generator
 1pick axe@15000=15000

 1welding 15,000

 1welding machine@30,000per
machine
day=30,000 30,000

 1generator@30,000per

day
 1generator 30,000

4 Security 2security guard 2security guard@7000per day 15*14000=210,000

=14000
5 Transportation 1truck 1truck@50000per day=50000 3*50000=150000
 truck

6 Storage of material 1store for 15 days store@5000per day=5000 15*5000=75000

Total 1,465,000/=
The present worth value (P) for the construction of the rope pump is
1,465,000/=

Annualy payment A

S/N ITEM QUANTITY UNIT RATE FINAL PRICE

1 Service charge 10,000 10,000/= per year 10,000*10,000=
house holds per household 100,000,000/=per
year

2 Maintenance of a) 2 marine For ( high 2*10,000/=

rope, pipes ropes strength double 20,000/=
braided polyester
marine rope @
10,000/=
b) 1 pvc pipe For 1 pvc pipe 1*35000=35,000/
@35,000/= =

3 Security 2 people for On monthly 2*5,0000*12=

charges security basis, 1 person is 1200,000/=
paid @50,000/=

Annual payment (A) = 10,000,000-55,000-1200, 000= 8,745,000/= (cash in)

The final deposit after 20 years( F)= ( annual payment *10- construction and
installation cost)
F = ((20*8,745,000)- 1,465,000) =173,435,000/=
CASH FLOW DIAGRAM.
P= 1,465,000/=
A= 8,745,000/=
F=173,435,000/=

0 1 2 3 4 5 6 ............................19 20

A A A A A A A A A A

F
COMPARISON IN TERMS OF PRESENT WORTH VALUE. (P)

Data
i= 10%
n = 20 years
Present worth value =- P + A (P/A, i,n) + F (P/F, i,n)
From the compound interest table i= 10%, n = 20
P/A= 8.514, and P/F = 0.1486
Since A = 8,745,000/=
Then P = 8.514*8,745,000
corresponding P = 74,454,930
Since F = 173,435,000/=
Then = 0.1486*173,435,000
corresponding P =25,668,380
The present worth value = -1,465,000 +74,454,930 +25,668,380=98,658,308/=
CONSTRUCTION OF WATER POINT AT IDUGUMBI VILLAGE
The community of idugumbi Mbeya in rural Mbeya, had faced the challenge of scarcity of
water the only source available is not enough to provide water consistent. Hence we have
highlighted three different option among which the most feasible one is to be chosen . the first
option we are going to study carefully before making any decision.
COMPONENTS OF PRINCIPLE
MATERIALS
Material is one of the parameters that will be have to evaluated for this project to be completed
such material needed for this project are
 Cement

 screening mesh

 PVC pipe

 water taps

 Sand

 Aggregate

 Pipe fittings

 Fuel

Equipments
The equipments to be used in this project will be divided in two categories some equipments
will be leased and some will be purchased
equipments for purchase
 water tank
equipments for lease
 concrete mixer
 dump truck
LABOUR
This project will need two groups of labor to complete the work
 unskilled labor-which shall perform physical activities
 skilled labor-that will need technical know how to perform and supervise the work.eg
hydrologist, engineer, technician

SECURITY
material and other resources at site will need to be protected for the whole period during
construction

TENDERING AND DESGNING PROCESS

During the tendering and desgning process some cost will be incurred,some of those cost are
Cost for operating the meetings -1,500,000
Cost for tender books printing-1,000,000
Cost for data collection before desgning-1,000,000
Cost for desgning of the water system-1,000,000

The design period of the water points,n=20years, i=10%

Number of compounds at iduhumbi village= 10,000 farmers households
S/N ITEM QUANTITY UNIT RATE FINAL PRICE
1 Materials
(A) Cement 12 bags 15,000 180,000/=

(B) screening 1 bundle 150,000 150,000/=

mesh

(C) PVC pipe 40 PIPES 35000 40×35000 =1,400,000/=

(D)water taps 10 taps 10000 10×10000 =100,000/=

(E)Sand 2 trips of 60,000/= for 1trip 2×60000 =120,000/=

Isuzu truck

(F)Aggregate 4 trips of 60,000/=for 1 trip 4×60000 =240,000/=

Isuzu truck

(G)Pipe fittings 41 threaded 10,000/= 41×10000 =410,000/=

couplings

3 valve 12,000/= 3x12,000= 36,000/=

(H)Fuel 70litres 2,500/= 70x2,500=175,000/=

2 EQUIPMENTS

(A)Equipment for
lease 1 150,000 per day 150,000/=

 Concrete
mixer
1 150,000 per day 150,000 /=

 Dump truck

(B)Equipment for
purchase

 25litres steel
water tank 1 10,000,000/= 10,000,000/=
3 LABOUR
(A)Unskilled

Site Clearance 15 labor @8,000/= per day 15×8000=120,000/=

Excavation 20 labor @8,000/= per day 20×8000=160,000/=

Pipe installation 10 labor @8,000/= per day 10×8000=80,000/=

Concrete work 5 labour @8,000/= per day 5×8000=40,000/=

Backfilling 10 labour @8,000/= per day 10×8000=80,000/=

(A)skilled

Surveyor 1 surveyor 50000/= per day and 4×50000=200,000/=

shall work for 4 days

hydrologist 1Hydrologist 50000/= per day and

shall work for 4 days 4×50000=200,000/=

900,000/= per month

supervision 1 supervisor 900,000/=

4 SECURITY 2security
guard @70000 per month 2×140,000=280,000/=

Storage of material 1 store for 3 100,000@per month 3×100,000=300,000/=

month
 TOTAL 15,471,000/=

P= 15,471,000 +1,000,000 +1,000,000 +1,000,000 +1,500,000= 19,971,000/=

Hence present worth value = 19,971,000/=

ANNUALITY
In this category we shall look to all the the money that will be going in and out of the project that
mean we shall deal with all the cash in and cash out
Parameters of the annual
 service charge ( cash in)
This is the monthly charged fee for the use of water from each house hold, the Iduhumbi society
have approximately 10,000 households. The approximated charge is going to be 1500/=
 maintenance (cash out)
Maintenance is expected to be done every year to keep the structure /system running hence
maintenances on the following will be done frequently
-Maintenances of pipes due to blockage
-maintenance of the pipe fittings
-maintenance of due bursting
 cleaning(cash out)
The tank should be cleaned frequently to promote health in the community

 water treatment(cash out)

Water need to be treated daily using chlorine dose
 inspection(cash out)
The water supply system has to be checked frequently at least once a month this will need
manpower, funds and other resources

 Tax
Even institution like mbewusa pay tax to the government so this will have to counted
annually
Assigning cost to Parameters of the annual
Cash in +
Cash out -
S/N ITEM QUANTITY UNIT RATE FINAL PRICE
1 Service charge 10,000 house 15,000/= per year 15,000×10,000=
holds per household 150,000,000/=per year

2 Maintenance of -5,000,000/=
pipes,fittings,tank
s

3 Cleaning Cleaning of 10000@per week for -10,000×52= -520,000/=

Expected to be one tank 52 weeks
done once a week

4 (TREATMENT) The chlorine The chlorine dose 12*416,700=-5,000,000/=

Chlorine dose dose treatment treatment at the tank
at the tank ,monthly @416,700
,monthly

5 inspection At the source Cost of inspection 12*416,700=-5,000,000/=

,at the top of per month @
the tank, pipe 416,700
system and
fittings,
monthly
6 VAT VAT, 18% VAT annual @ 18%×150,000,000=
MONTHLY -27,000,000 -27,000,000
18%
 Since Cash in is great than cash out, so annually will be cash in – cash out
Cash in= 150,000,000/=
Cash out=42,520,000/=
150,000,000- 42,520,000 = 107,480,000/=
Annually will be 107,480,000/=
FUTURE VALUE
COMPONENTS OF FUTURE VALUE
RESALE VALUE
It is expected after the design life of the project the material such as pipe ,tanks etc may have
some value left in them which means they can be applied in some other use of about 500,000

From formula F value will be:-

F= A × N

F=107,480,000 × 20
F=2,149,600,000 + 500,000
Hence the Future value is 2,150,100,000/=

CASHFLOW DIAGRAM
P=19,971,000/=
A=107,480,000/=
F=2,150,100,000/=

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

A A A A A A A A A A A A A A A A A A A A
 F
COMPARISON IN TERMS OF P
(a)perspective of P

−𝑃 + (𝐴(𝑃/𝐴, 𝑖, 𝑛) ) + (𝐹(𝑃/𝐹, 𝑖, 𝑛) )

= −19,971,000 + (107,480,000 𝑥 8.514) + (2,150,100,000 𝑥 0.1486)

= 1,214,618,580/=

After evaluating both of the three projects to find the most feasible projects using engineering
economy equivalence the following value in term of P were obtained
 rope pump = 98,658,308

 water points = 𝟏, 𝟐𝟏𝟒, 𝟔𝟏𝟖, 𝟓𝟖𝟎/=

hence we are concluding by saying that project................ is the most feasible one since it has
higher P VALUE